InnovAge, which operates Programs of All-Inclusive Care for the Elderly (PACE), missed Wall Street earnings estimates for the final quarter of 2021 but still turned in solid revenues.
On Wednesday, the Denver-based company reported per share earnings of $0.01 in the final three months of 2021 on revenues of $175.3 million, compared to $0.08 a share on revenues of $157.3 during the same period in 2020. Wall Street analysts predicted InnovAge would earn $0.04. For the full year, the company earned $0.07 a share on revenues of $348.4 million.
InnovAge went public less than a year ago but has been mired in controversy in recent months after the Centers for Medicare & Medicaid Services suspended enrollment at PACE programs in California and Colorado. The regulatory action came in December after an audit found the company wasn’t providing necessary services to clients. As a result, CEO Maureen Hewitt was forced out of her position.
CEO Patrick Blair said in a statement Wednesday afternoon InnovAge is making progress addressing the deficiencies CMS outlined in its audit.
“The team has kicked off the launch of our new Electronic Medical Record system, submitted and received approval for our corrective action plans addressing the audit deficiencies in Sacramento, and is working to submit corrective action plans to multiple agencies in Colorado, while continuing to make progress on our future,” Blair explained.
Blair also said InnovAge continues to navigate other challenges, including uncertainty over the COVID-19 pandemic, as well as higher labor and supply costs.
InnovAge operates PACE programs in 5 states, serving approximately 7,000 seniors. PACE programs provide comprehensive medical and social programs to seniors dually eligible for Medicare and Medicaid. The program allows those patients to remain in their homes and communities, rather than skilled nursing facilities.
